International Journal of Entrepreneurial Behavior & Research Rule-breaking and legitimacy: a failure of artful navigation? Lorraine Warren Robert Smith Article information: To cite this document: Lorraine Warren Robert Smith , (2015),"Rule-breaking and legitimacy: a failure of artful navigation?", International Journal of Entrepreneurial Behavior & Research, Vol. 21 Iss 2 pp. 243 - 262 Permanent link to this document: http://dx.doi.org/10.1108/IJEBR-03-2014-0052 Downloaded on: 22 June 2016, At: 07:36 (PT) References: this document contains references to 80 other documents. 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The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. *Related content and download information correct at time of download. The current issue and full text archive of this journal is available on Emerald Insight at: www.emeraldinsight.com/1355-2554.htm Rule-breaking Rule-breaking and legitimacy: and legitimacy a failure of artful navigation? Lorraine Warren Management School, University of Southampton, 243 Highfield, Southampton, UK, and Robert Smith Received 25 March 2014 Aberdeen Business School, Robert Gordon University, Aberdeen, UK Revised 4 August 2014 18 October 2014 30 November 2014 Accepted 2 December 2014 Abstract Purpose – The purpose of this paper is to critically examine the tension between rule-breaking and legitimacy for entrepreneurs, who are expected to challenge and change social or business norms. In doing so, they may be presented as heroes in the media, or alternatively, are cast out as villains with attendant negative press with consequent loss of legitimacy. Design/methodology/approach – Through secondary data methods, the paper analyses the case of Vance Miller, an entrepreneur from the North of England who has achieved economic success amid reports of alleged criminality and poor ethical behaviour. Thus he spans rule-breaking and legitimacy. Findings – The paper illustrates how rule-breaking directed towards demonstrable entrepreneurial achievement does not always result in media legitimacy. Miller’s storyline both chimes with and clashes with the discourse of the enterprise culture, providing a cautionary note for aspirant entrepreneurs. Research limitations/implications – The hero-villain paradox remains relatively unexplored in the media, and thus further qualitative research is required, particularly for aspirant entrepreneurs with controversial or criminal backgrounds. Practical implications – Entrepreneurs should question carefully the extent and potential consequences of rule breaking in regard to legitimacy. Social implications – The paper highlights and indeed questions the role of the media in their representations of entrepreneurship, and challenges the valorisation of rule-breaking behaviour by entrepreneurs. Originality/value – The paper makes a distinctive contribution to the literature by examining the relation between rule-breaking and legitimacy for an entrepreneur who is represented negatively in Int Jrnl of Ent Behav & Res 2015.21:243-262. the media, yet remains successful, counter to the heroic stereotype. Keywords Entrepreneurship, Enterprise culture, Media, Criminality, Rule breaking, Vance Miller Paper type Research paper Introduction There is growing recognition of entrepreneurship as a process that takes place in a social and cultural context, where the interests of the individual entrepreneur, the firm, and a wider range of societal stakeholders are intertwined (Steyaert, 2007; Baron and Shane, 2007; Kuratko, 2008; Welter, 2011). In this context, notions of legitimacy, reputation and ethical behaviour have been argued by some as crucial for the overall success of a growing entrepreneurial endeavour (Lounsbury and Glynn, 2001; Downing, 2005; Jones et al., 2008). Yet entrepreneurs can court controversy when challenging established orthodoxies, particularly where rule-breaking takes place (Panaviotopoulous, 1996; Smith, 2005; Warren, 2007; Brenkert, 2009; Anderson and Warren, 2011), which can raise questions over the ethics of entrepreneurial behaviour. Perceived rule-breaking can also International Journal of “ ” Entrepreneurial Behavior & present dilemmas for the media, who often portray entrepreneurs in an heroic light, as Research Vol. 21 No. 2, 2015 validated societal change agents (Nicholson and Anderson, 2005). pp. 243-262 In this paper we seek to make a distinction between entrepreneurial legitimation © Emerald Group Publishing Limited 1355-2554 within sectoral and local business institutions and moral legitimacy. Most of the DOI 10.1108/IJEBR-03-2014-0052 IJEBR current literature is situated in the former. Moreover, we situate both within a 21,2 specific socio-cultural and legal framework. We thus distinguish between the more generic entrepreneurial legitimation and differentially identifiable specific socio-cultural normative legitimation (or demonisation). We do so by analysing the case of Vance Miller, a successful businessman and entrepreneur from an industrial town in the North of England (and thus a sectoral institution). Miller is chosen for 244 this study because he has attracted controversy in the media. Reports of considerable economic success are intertwined with themes of alleged criminality[1] and poor ethical behaviour. Our study is useful because Harris et al. (2009) refer to the entrepreneur stereotype, remarking that “whereas much can be said for not breaking certain rules (such as moral or legal ones), the entrepreneur is often mythologized as a bold, path breaking maverick” and asks how to reconcile these opposing concepts into an “ethics of entrepreneurship”. Not all entrepreneurial rule-breaking is legal or moral though and nor is it is always perceived as heroic (Williams and Nadin, 2010). For example, Williams and Nadin review the significance of informal, or “off the books” entrepreneurship, where economic activity takes place “under the radar” for tax or benefit purposes. There have also been conflations of the entrepreneur with “spiv” or “wide-boy” stereotypes) who often overstep the boundaries of legality (e.g. Kimmell, 1993; Duarte, 2006). Further, there are studies of entrepreneurship that is practiced through outright criminality (Rehn and Taalas, 2004; Bouchard and Dion, 2009; Frith and McElwee, 2008a, b; Smith and Christou, 2009). Finally, there are numerous examples of high profile entrepreneurs with businesses that seem successful and legitimate, at least for a time, but who “fall from grace” (Smith and McElwee, 2011; Warren, 2007) for business-related wrongdoing, with great media attention. Such entrepreneurs navigate a fine line between villainy and heroism in the media, their reputation depending upon how their behaviour is perceived in regard to norms in their social milieu. Takafumie Horie for example, was the “poster boy” for Japanese internet entrepreneurship, until he expanded into too many areas and was prosecuted in a well-documented case of securities fraud, Int Jrnl of Ent Behav & Res 2015.21:243-262. amid rumours that he had aggravated the powerful and conservative Japanese business establishment (Warren, 2007). Of course, many would-be entrepreneurs fail with little fanfare, as there is not much of a market for discouraging stories. Yet some failures, like those of Horie, receive great attention, perhaps because as Smith and McElwee (2011) and Smith and Anderson (2004) suggest, they can be rewritten as epic tales of tragedy, which might well attract readers. Whatever the reason, study of such cases can give us insight into the nature of rule-breaking behaviour and its fit with the mythology of entrepreneurship. Although there are some isolated studies of the link between ethics, entrepreneurship and crime (see Everett et al., 2006; Heath, 2008; Breit, 2010), thus far the tension